The purchase application index has been highlighted as a particularly important data series as it very broadly captures the demand side of residential real estate for both new and existing home purchases.

The latest data is showing that the average rate for a 30 year fixed rate mortgage declined slightly dropping 6 basis points since last week to 5.44% while the purchase application volume increased 7.31% and the refinance application volume increased 5.92% compared to last week’s results.

It’s important to recognize that while the Federal Reserve’s “quantitative easing” measures appeared to hold rates down in recent months, the trend now seems to be changing.